NEW YORK (TheStreet) --Amazon.com (AMZN) is bringing its video streaming services to the world. The Seattle-based e-commerce giant announced on Thursday that it plans to roll out Amazon Prime Video to 200 countries.
But, what will the global introduction of its video service mean for the stock moving forward? Nomura managing director Anthony DiClemente joined CNBC's "Power Lunch" to answer that question.
"I think it's evidence that Amazon is seeing a lot of traction in its media strategy. Like a lot of things that Amazon's doing in media now, this is a very expensive proposition," DiClemente noted.
He cautioned investors to use patience regarding Amazon's stock, particularly in the near-term, as this move could impact its margins.
"But, for people who know [CEO] Jeff Bezos; he's not a guy that likes to show high operating margins. You believe in his ability to invest in a high return on capital," DiClemente stated.
Furthermore, Amazon remains a solid stock to own in the long-term because of its presence in two huge markets, e-commerce and AWS (Amazon Web Services).
"I think the stock is still fine despite the dramatic investment in media and video," DiClemente said.
Shares of Amazon.com were inching higher in late afternoon trading on Friday.
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with afree trial).
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